Peer-to-Peer (P2P) lending, traditionally is an unorganised exchange of soft loan between individuals at a high interest rate, at flexible terms as mutually agreed between lenders and borrowers. Today with the wave of the digital world, this whole process of transaction has changed, one can easily and quickly get hassle-free unsecured loans online at the best possible interest rate.
Peer-to-Peer lending marketplaces are gaining popularity with borrowers due to low interest rate, simplified application process and faster disbursement. P2P is an innovative credit , which has found its niche in the financial industry by its unique method of offering borrowers an improved lending experience and hence is gaining momentum. It offers ease of transaction, combined with user-friendly and efficient process handling. P2P platforms do not provide loans, but they facilitate the matchmaking between borrowers and lenders. Such platforms incorporate wide range of data beyond traditional credit scores to assess the risk rating of potential customers. The key drivers are risk based pricing and return seeking lenders with an interest to diversify funds.
Globally, P2P lending started around 2008 and in India it started actively about a year ago. The Peer-to-Peer lending is well established worldwide and is widely used in US, UK and China, followed by Australia and now India. P2P with its current turnover of over $20 billion is projected to reach $150 billion+ by 2025. There are many active players in this space like, Lending Club, Prosper, Kiva, Zopa, Fairplace, CreditEase, PPdai.com, Society One, i-Lend, Faircent, Indialends and India Money Mart.
India Money Mart (IMM) is gradually increasing its footprint in the space of Peer-to-Peer lending; their marketplace is an open platform that works as a win-win for both borrowers and lenders registered with IMM. The underwriting and due diligence done by IMM is process driven and has been building confidence among borrowers and lenders resulting in great user experience and customer satisfaction. The IMM Team’s proficiency in handling the tools developed for managing loans also reduces the risk factors for lenders who are transacting with duly verified borrowers.
IMM thrives at building the P2P lending business with a focus on:
- Ease of use
- Reducing risk
- Building trust
- Faster processing
- Large portfolio of lenders and borrowers
- Wide range of category of loans
- Credit assessment
- Affordable interest rate
- World class technology platform
Founders of IMM are addressing the challenge to create a resilient system that people can trust. Consumer requirement for loans are varied and not all the requirements are being catered by financial institutions. Coming from sound business backgrounds in diverse fields, the promoters of IMM recognize the need for designing a system that will facilitate social lending for a wide variety of applications. IMM under the leadership of Mahendra Agrawal and its co-founders sees a huge potential and growth in P2P lending with the increasing population and demographic shift, where individuals and institutions are constantly looking for investment opportunities with higher returns, competing directly for borrowers for a whole range of loan products, credit assessment and markets. A collaborative approach with large number of participants helps reducing cost structure and ensures level playing in the space of financing.